The project consists of 17 wells, all of which have had previous production, these must be restarted in their previous formation, this is done by cleaning the wells and shielding some of the formation in the wells, this is done with what is called a Gravel Pack, video of this work is in the prospectus.
The project has an extremely strong budget, as the cost of renovating and starting up the wells is relatively low. We have prepared several economics scenarios with different barrel prices. An example could be $ 40 per. barrel, here the estimated payback will be 5 x you investment back again, over the first 5 years. The principal is expected to be earned within approx. 12 months from when all 17 wells have been put back on production. You can see more economics inside the prospectus, as well as read more about this exciting project. The E-book link is below one in english and one in Danish for our scandinavian investors to read. ENJOY
• 17 oil wells with proven reserves• One well has been opened up, with an initial production of 19 barrels per day. However, limited to 9 a day, to obtain tax benefits (low taxation)• The wells have been in production before• Project renovation is Turn-Key (Fixed price) for the investor until each well has been put into production, with the different possibilities to achieve this in accordance with the operator• The operator and other partners in the project together own 80%• Low taxation of 3.5% on crude oil, as you keep production below 9 barrels per. well• It is possible to develop approx. 50 more wells in the local area with the same business model• Dividends are paid every month, settlement documents are prepared by an independent auditor• Price per. 1% ownership in the 17 oil wells @ $ 10,500.- (approx. DKK 66,000)• The operator / oil company describes this project as a low risk project within the oil industry. Thus, it is also suitable for first-time buyers who want good risk diversification of the invested capital
Thanks, EnerGyne Resources